Wednesday, March 26, 2014

Line Types in Purchasing

Line type in purchasing used to differentiate what we purchase. they are used reflect different characteristics for the items we purchase.

Types
  • Value basis: Quantity and Purchase Basis: Goods: We use this line types when we know quantity and price of the item we are going to purchase. For example I want to purchase a laptop having price of 1000 dollars. So you know here quantity and per unit price. here while setting up You can also select if its used for outside processing. 

  • Value basis: Amount and Purchase Basis: Services: This type of line type is used when you want to purchase services. Suppose you want to buy a consulting services to support oracle apps project or you want to install a wireless LAN. you can order for $1000 service.  Here while setting up price automatically became 1 and you can define unit which defaults on PO. you need not to create item for this  only description is enough. Also you can specify if you want to have receipt required which will default on po shipment.

  • Value basis: Fixed price and Purchase basis: Service: This is available when service procurement is implemented. It is used to buy a fixed price general office service

  • Value basis : Fixed price and Purchase basis: Temp Labor:  It is used when service procurement is implemented. Its where temp labor is fixed price like office cleaning. used for contract labor.

  • Value basis : Rate Based and Purchase basis : Temp labor. It is also used service procurement is implemented. It used to if you want to order temporary labor service by per unit rate. For this you need to define JOB and then you can select UOM like day, hour or week and mention the price. For example need temporary clerk for 1 day or 1 hour or week. 

Thanks
Mandeep

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